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Economics Basics Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is the basic problem that economics tries to solve?

a)

How to increase unlimited resources

b)

How to reduce people's wants

c)

How to satisfy wants with limited resources

d)

How to avoid spending money

2.

What does it mean when someone says they "can't afford" something in economic terms?

a)

They don’t want it

b)

They don’t know how to buy it

c)

Their wants are greater than their income

d)

The item is unavailable

3.

Which of the following best defines a 'want'?

a)

A necessary good for survival

b)

Something people desire to have

c)

A type of natural resource

d)

A government-funded service

4.

A haircut is best classified as which of the following?

a)

A want

b)

A good

c)

A capital

d)

A service

5.

What distinguishes a good from a service?

a)

Goods can be consumed, services cannot

b)

Goods can be stored, services cannot

c)

Goods are physical, services are actions

d)

Goods are cheaper than services

6.

Which of the following is an example of a capital resource?

a)

A tree

b)

A bank loan

c)

A gardener

d)

A river

7.

What type of resource is a worker in a video game company?

a)

Capital

b)

Labour

c)

Natural

d)

Want

8.

What does the concept of scarcity refer to?

a)

Too much money chasing too few goods

b)

A lack of knowledge about resources

c)

Limited resources vs unlimited wants

d)

When goods are too expensive to buy

9.

Which of the following is NOT one of the three basic economic questions?

a)

What should be produced?

b)

Where should it be sold?

c)

How will it be produced?

d)

Who will use it?

10.

Why do countries need to make economic decisions?

a)

Because of limited laws

b)

Because of inflation

c)

Because of scarcity of resources

d)

Because citizens demand it

11.

What is an example of a natural resource?

a)

A school

b)

A mountain

c)

A teacher

d)

A bank loan

12.

Why might a country have to choose between military spending and education?

a)

Because it has too many workers

b)

Because it has limited resources

c)

Because education is not valuable

d)

Because the military owns the budget

13.

Which of the following helps a business answer 'who will use the product'?

a)

Deciding where to locate the factory

b)

Hiring more workers

c)

Studying the market

d)

Gathering raw materials

14.

What economic activity is involved when a company uses computers to design a game?

a)

Consumption

b)

Distribution

c)

Capital use

d)

Natural production

15.

A decision to go to the movies instead of buying a book is an example of:

a)

Specialisation

b)

Scarcity

c)

Opportunity cost

d)

Profit maximisation

16.

What is likely to happen when many items are on sale?

a)

Demand goes down

b)

Supply is restricted

c)

Demand increases

d)

Wants become limited

17.

Which of these best describes the consumption of goods and services?

a)

The creation of products

b)

The use of goods/services to satisfy wants

c)

The investment in resources

d)

The selling of products abroad

18.

What does the phrase 'limited supply of money' reflect in economics?

a)

The law of supply

b)

The need for saving

c)

The idea of scarcity

d)

The value of trade

19.

Which of the following is a true economic decision?

a)

Deciding which colour to paint your wall

b)

Choosing to walk instead of drive

c)

Picking between a phone or headphones with limited funds

d)

Changing your social media app

20.

Why do economists study production, distribution, and consumption?

a)

To control population

b)

To understand how economic choices affect society

c)

To limit people's spending

d)

To predict inflation accurately